LINCOLN, Neb. (AP) — Nebraska Gov. Jim Pillen told lawmakers Wednesday that the state’s economy is strong, its finances are stable, and its future depends on continued spending restraint, tax reform and policies aimed at economic growth, public safety and education.
Delivering his 2026 State of the State address to the Nebraska Legislature, Pillen reflected on the past year and outlined priorities for the short legislative session, emphasizing government efficiency, workforce growth, public safety and reductions in property taxes.
Pillen opened the address by recalling injuries he suffered in a horseback riding accident a year earlier and thanked Nebraskans for their support. He also expressed gratitude to his family and the families of public servants.
The governor said his administration has worked to reduce the size and cost of government by returning state employees to in-office work, cutting back on contractors and streamlining state agencies. He said those efforts have helped reduce spending while maintaining services.
Pillen cited Nebraska’s economic performance, pointing to strong gross domestic product growth and positive population trends. He said Nebraska has surpassed two million residents for the first time and described the state as economically diverse, with strength in agriculture, manufacturing, finance, health care and construction.
The governor highlighted infrastructure investments, including progress on Highway 275 in northeast Nebraska, and praised the state’s ethanol and cattle industries, noting Nebraska leads the nation in both areas.
On taxes, Pillen said Nebraska’s tax system remains flawed but noted recent changes, including property tax relief measures and the elimination of state taxes on Social Security income. He called for additional tax relief tied to reductions in government spending and said his proposed budget would improve the state’s bottom line by about $500 million over the next biennium.
Pillen said Nebraska’s fiscal reserves total nearly $2 billion and described the state’s credit rating as the strongest in its history.
The governor also emphasized economic development, including incentives aimed at attracting high-paying jobs, and praised the Lincoln-based construction software company CompanyCam, which recently reached a valuation of more than $1 billion.
Energy policy was another focus, with Pillen stressing the need to expand electricity generation to support emerging industries such as artificial intelligence. He said Nebraska’s public power system provides a strong foundation but called for changes that would allow large users to generate power and sell excess electricity to the grid.
On public safety, Pillen highlighted cooperation with federal authorities on immigration enforcement and border security. He also recognized Omaha police officers involved in a December shooting incident and praised law enforcement officers statewide.
Education policy was also addressed. Pillen said the state should prioritize classroom order and academic rigor in K-12 schools and called for changes to laws governing student discipline. He also said Nebraska’s public universities should focus on research and instruction rather than political activism and reiterated his support for ending diversity, equity and inclusion programs at state institutions.
The governor backed legislation related to agricultural data privacy, antisemitism reporting requirements in higher education and a proposed constitutional amendment that would allow voters to decide how Nebraska allocates its electoral votes in presidential elections.
Pillen closed by honoring Nebraska veterans and urging lawmakers to work together during the legislative session.
“The state of our state is strong,” Pillen said, adding that continued fiscal discipline and cooperation would help ensure Nebraska’s long-term success.
Comments